KUALA LUMPUR, Jan 26: Technical support buoyed Malaysian crude palm oil futures for a second straight day on Thursday, but trade volumes were modest with players winding down ahead of next week’s long break.

Volume totalled 2,006 lots of 25 tons each, with more than two-thirds of it coming in the last half hour. The market trades 6,000 lots or more on busy days.

Palm oil prices have been trapped below 1,450 ringgit resistance for weeks due to thin export numbers, although industry sources say lower production in the first quarter could reduce physical stocks of the commodity and spark a fresh run higher.

Palm oil stocks in Malaysia hit a record 1.6 million tons at end-November and remained unchanged at end-December.

Plantations say stocks could fall around 10 per cent over the next two months as the crop enters a lower yield period.

In physical crude palm oil, January quotes stood at 1,420/1,425 ringgit a ton in Malaysia’s southern and central regions. Trades were reported at 1,420 ringgit on both sides.—Reuters